Blockchain’s Impact Over The Next Decade: Recapping ARK Invest’s “Big Ideas” Report
28 Janvier 2022 - 2:36AM
NEWSBTC
We recently highlighted ARK Invest’s big crypto take recently,
released as part of their “Big Ideas 2022” report. The big idea
that we covered was one of ARK’s most loud takes in the entire
report, a modeling of bitcoin’s potential path to a $1M price per
token by 2030. However, there’s more to digest out of the Big Ideas
report – an annual digest of innovation, five years in the running,
from the team at ARK Invest. So let’s take a look at some other
crypto and blockchain related insights from the ARK team that came
to light in this recent paper. Bringing The Big Ideas… There are a
variety of blockchain and crypto related buckets that the Big Ideas
report covers, so while we’re spare you the content and perspective
around electric vehicles, AI, and 3D printing, we’ll of course take
a dive into ARK’s sentiment on Ethereum, Web3, digital wallets, and
more. ARK sees blockchain technology advancing at a 43% compound
annual growth rate (CAGR) over the next 8 years, expanding from a
current market cap of roughly $1.4T to a 2030 market cap of roughly
$49T. This is a more aggressive CAGR than any of the other major
categories that ARK outlines with the exception of robotics.
Furthermore, the firm sees blockchain technology at large as a
vessel to a world where “everything could become money-like:
fungible, liquid, quantifiable” and that digital wallets hold
massive disruption power, adding that wallets could allow consumers
to “hold the power of a bank branch in their pockets and demand
wholesale pricing for many financial transactions.” Related Reading
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Blocks When in doubt, zoom it out. The 5-year BTC chart is a stark
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unreasonable. | Source: BTC-USD on TradingView.com More On Digital
Wallets Centralized and not necessarily crypto-centric digital
wallets have already sprouted to become massive players in finance.
Cash App, Venmo, and competitors are taking personal finance by
storm, and ARK anticipates scaling growth at an annual rate of
nearly 70%. Digital wallets surpassed cash at point of sale
transactions last year, and blockchain and crypto can certainly
absorb some of that growth as well. Additionally, ARK aptly notes
that digital wallets also can serve as a touchpoint to onboard
Web3.0 assets, such as NFTs. Let’s Talk Broader Blockchain As
crypto continues to evolve, ARK is still focused on the genesis
that is BTC, stating that the firm “believe(s) bitcoin is the most
profound application of public blockchains,” but adding that it has
spurred DeFi and Web3.0 revolutions. ARK Invest emphasizes and
celebrates public blockchain infrastructure at large for their
decentralized and permissionless nature, their open-source
networks, and the broad user participation and engagement.
Furthermore, the report cites a vision of public blockchains
impacting vast asset classes (cryptocurrencies, crypto-equities,
NFTs, DAOs, etc.) in the same way that the internet revolutionized
a variety of asset classes (such as online radio, tv, news, and
e-commerce). This idea is fleshed out further, and broken out into
three buckets of revolution: money, financial, and internet. The
graphic below, pulled directly from the Big Ideas report, paints
this picture in interesting fashion: Further in the report, there
is also a dedicated section for Ethereum and DeFi, as well as Web3.
In these sections, ARK highlights DeFi and NFTs driving demand for
Ethereum, leading to Ethereum 2.0 anticipation, and spurring demand
for Layer 2 solutions. Meanwhile, ARK Invest forecasts Ethereum to
potentially grow over 50x in market cap over the next decade.
Additionally, ARK calls out the permissionless, frictionless,
transparent, and public nature of DAOs as especially unique, and
cites digital ownership as an accelerator for society’s continued
shift to a more online world. Finally, while NFTs today are a bit
more ‘siloed,’ ARK Invest envisions a blurring of the line between
consumption and investment, and a more holistic experience around
NFT and Play-to-Earn worlds. More ‘Big Ideas:’ A Focus On Bitcoin
As the ARK team has done previously, they dedicated an entire
section of the Big Ideas report to Bitcoin and Bitcoin alone. ARK
sees network participants as maturing and having a particular focus
on the long-term, while still showing exceptional growth
year-over-year by nearly any metric – including average transaction
values, average daily transfer volumes, and cumulative annual
transfer volumes. How will this continue? The report highlights
Lightning Network growth, increased adoption, and growing
institutional holders – among other things. In fact, according to
the report and as of numbers collected in November 2021, “exchange
traded products, countries, and corporations held 8% of bitcoin’s
supply.” The deck goes on to address environmental, social, and
governance (ESG) concerns that are often mentioned by critics, and
highlights crypto mining as “a digital-monetary energy network” –
citing mining as having the potential “revolutionize energy
production” by way of green energy incentivizes. Of course, we’d be
remiss not to call out the boldest take of them all – and what
brought us to this point today – the $1M BTC token price. Pinch me
in 2030. Related Reading | How The Fed’s Move Could Affect The
Crypto Market Featured image from ark-invest.com, Charts from
TradingView.com The writer of this content is not associated or
affiliated with any of the parties mentioned in this article. This
is not financial advice.
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